The Federal Deposit Insurance Corporation has released new guidelines that permit FDIC-supervised institutions to participate in allowable crypto-related activities without needing prior approval from the agency.
This decision represents a shift from earlier policies that were perceived as limiting banks’ collaborations with crypto companies.
The guidance, outlined in Financial Institution Letter (FIL-7-2025), revokes a directive from 2022 that mandated banks to inform the FDIC before partaking in digital asset activities. The FDIC has stated that banks are now allowed to engage in crypto-related operations as long as they manage the associated risks effectively.
Strengthening connections with crypto firms
This policy change follows the unveiling of 175 FDIC documents earlier this year, which disclosed attempts by the previous administration to urge banks to sever ties with crypto companies.
These documents were released in response to a Freedom of Information Act request made by Coinbase, which had launched a lawsuit against the FDIC in 2024 over claims of unjust practices.
“With this action, the FDIC is moving away from the misguided approach of the last three years,” stated Acting FDIC Chairman Travis Hill. “I anticipate this will be one of many steps the FDIC will take to establish a new framework for how banks can interact with crypto and blockchain-related activities while maintaining safety and soundness standards.”
The records outline instances in which the FDIC directed banks to halt or suspend services to crypto-related businesses, a move criticized as “Operation Choke Point 2.0.”
The agency often cited concerns over reputational risks and market instability as reasons for discouraging financial institutions from collaborating with crypto firms.
The FDIC affirmed its commitment to continue collaborating with the President’s Working Group on Digital Asset Markets and to work alongside other banking agencies in developing clearer guidance regarding crypto-related activities.